PHOENIX, Dec. 5, 2016 /PRNewswire/ -- Despite rising real estate values and tighter single-family home inventories, there are still excellent real estate investment opportunities in major metro areas across the country. However, investors should be prepared to pay with cash and commit to high-quality renovations to maximize the long-term profitability of their investments, according to Bruce McNeilage, co-founder and CEO of Kinloch Partners. McNeilage made his remarks at the IMN Single-Family Real Estate Conference here today.
"Cash is king for any real estate investor looking to purchase inventory right now," McNeilage said. "Sellers, particularly banks looking to get foreclosed properties off of their books, want to make a transaction as easy and as quickly as possible. A cash buyer is much more appealing to a seller than having to wait for someone to get a mortgage. The cash buyer is in a much better position to get the deals they are looking for."
McNeilage also encouraged single-family home investors to buy and renovate multiple homes at once, creating economies of scale that will allow them to complete renovations at a lower cost. McNeilage frequently renovates multiple homes at once and negotiates bulk deals for appliances, with his construction crews and kitchen and bath suppliers. This enables Kinloch Partners to provide amenities such as granite countertops and stainless steel appliances that are more attractive to buyers and renters.
Once rented, the cash-flow positive homes are attractive to national hedge funds and Real Estate Investment Trusts. Kinloch has sold several properties to national investors in the past several years, typically at a profit that out-performs the local market.
"Sticking to our disciplined formula – cash acquisitions, high-quality upgrades and stable rental agreements has made our portfolio of homes attractive to national investors," McNeilage said. "Rather than selling one home at a time at the whims of local market prices, we are able to provide a portfolio of homes that creates instant profitability for major hedge funds and REITs."
About Kinloch Partners, LLC
Kinloch Partners, LLC is a real estate investment company formed in 2011 by childhood friends Bruce W. McNeilage and Christopher P. Zachary, who met on the playground at Kinloch Elementary School in Dearborn Heights, Michigan, in the mid-1970s. The company specializes in providing a path to home ownership for new homeowners through new construction, home renovation or investment in financially distressed real estate properties.
SOURCE Kinloch Partners, LLC